Naked Put

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Dictionary Says

Definition of 'Naked Put'

A put option whose writer does not have a short position in the stock on which he or she has written the put. Sometimes referred to as an "uncovered put."
Investopedia Says

Investopedia explains 'Naked Put'

Naked puts are very risky since the writer can lose big if the underlying asset moves opposite to the desired direction. But, profits are huge if the underlying asset moves in the right direction.

Search results for

'Naked Put'

  • Naked Options Expose You To Risk

    http://www.investopedia.com/articles/optioninvestor/08/naked-options.asp
    ... unreasonable. Naked Puts A naked put is a position in which the investor writes
    a put option and has no position in the underlying stock. ...

  • Trade Smarter With Equivalent Positions

    http://www.investopedia.com/articles/optioninvestor/09/equivalent-positions.asp
    ... you have enough cash in your account to buy the shares if you are assigned an exercise
    notice, there are two very practical reasons for selling a naked put: ...

  • Should Your Options Go Naked?

    http://www.investopedia.com/articles/optioninvestor/05/010505.asp
    ... By selling a 6-lot 1165 call and 980 put naked strangle on the September S&P,
    we collect $6,300 in premium, and our initial margin is $77,010. ...

  • Bear Put Spreads: A Roaring Alternative To Short Selling

    http://www.investopedia.com/articles/optioninvestor/09/bear-vertical-put-spread.asp
    ... In either of these cases, a trader may give him or herself an advantage by trading
    a bear put spread, rather than simply buying a naked put option. ...

  • Naked Call Writing: A Risky Options Strategy

    http://www.investopedia.com/articles/optioninvestor/122701.asp
    ... SEE: Prices Plunging? Buy A Put! When selling a naked call, you would instruct
    your broker to "sell to open" a call position. Remember ...

  • SEC Seeks To (Ad)Dress Naked Shorts - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0609/SEC-Seeks-To-AdDress-Naked-Shorts.aspx
    ... (To learn more, read The Short And Distort: Stock Manipulation In A Bear Market.).
    Recent market turmoil has put naked trades in the spotlight. ...

  • Series 65 Study Guide - Alternative Investments - Derivative ...

    http://www.investopedia.com/exam-guide/series-65/alternative-investments/derivative-securities.asp
    ... buyer. The writer of a naked put option that does not own a short position
    in the underlying stock faces the same risk. Exam Tips ...

  • Taking Advantage Of Volatility Spikes With Credit Spreads

    http://www.investopedia.com/articles/optioninvestor/10/volatility-spikes-credit-spreads.asp
    ... As selling naked put options entails the assumption of excessive risk, most traders
    are rightly hesitant to sell naked puts, particularly when there is ...

  • Put Option Basics

    http://www.investopedia.com/video/play/put-option
    Videos /. Put Option Basics. ... Put option allow investors to hedge an investment
    they own or speculate in an investment they don't own. ...

  • Profiting From Stock Declines: Bear Put Spread Vs. Long Put

    http://www.investopedia.com/articles/optioninvestor/09/bear-put-spread-long-put.asp
    ... Nevertheless, the point here is to illustrate that there are times when the less
    aggressive bear put spread may be preferable to a naked long put position. ...

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